Why didn't we see the market meltdown coming.

Wired Magazine interviewed George Akerlof, a UC Berkeley economics professor, in the Dec 2002 issue. They asked him why we didn't see the market meltdown coming. Below is part of his answer:

the public and the government went wild with the idea that we should have very free markets. But free markets mean you have more regulation and more monitoring. If you keep your toddler in a playpen, you don't need to monitor them. When you let the toddler out of the playpen, you need to watch them much more. …

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